BCG Matrix 1
What does the acronym BCG Matrix stand for?
Boston Consulting Group Matrix
What does the horizontal axis in BCG Matrix represent?
It represents product strength and the market share in a given market.
What is the BCG Matrix?
It is a planning tool that utilizes graphical representations of business’s goods and services to assist the organization in deciding what to conserve, sell or spend more in.
What does the vertical axis on the BCG Matrix represent?
It represents the product growth rate as well as its potential for expansion in a specific market.
What are the four (4) components of the BCG Matrix?
Question Mark
Star
Dog
Cash Cow
Limitation of BCG Matrix
Companies cannot see beyond market share and growth with the matrix.
What does the star represent in BCG Matrix?
Products having a large market share and strong market growth rate.
Limitation of BCG Matrix
Does not provide adequate information for handling complex business problems.
What does the question mark in the BCG matrix represent?
Products having low market share but strong market growth rate.
What are 2 benefits of BCG Matrix?
Businesses gain a framework for evaluating the success of each product to help the company determine what product to invest in, and what product to eliminate.
BCG matrix gives an overall look of how products are performing against each other or individually.